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Redbox could get into the online video streaming business, if a recent survey is any indication. According to High-Def Digest, Redbox has reportedly asked customers if they would be interested in a streaming service that would put the kiosk rental company in direct competition with industry […]

Redbox could get into the online video streaming business, if a recent survey is any indication. According to High-Def Digest, Redbox has reportedly asked customers if they would be interested in a streaming service that would put the kiosk rental company in direct competition with industry leader Netflix.

The survey asks Redbox users if they would pony up $3.95 for a video subscription service that would include unlimited online streaming and four kiosk rentals a month. Since Redbox rentals typically cost $1 a day, that would basically mean that they would get free streaming along with their four rentals.

The price sounds right, especially when one compares it to what Netflix charges. Currently, the cheapest Netflix plan — which includes unlimited streaming and one DVD-by-mail disc out at a time — runs $9 a month, so Redbox would be charging less than half of what Netflix subscribers currently pay.

Even with a low price point, a Redbox streaming service will face some serious challenges. For one thing, Netflix has a pretty large head start in the streaming business, particularly in the area of content acquisition. Since launching its Watch Instantly streaming service in early 2007, it has amassed more than 17,000 video titles in its streaming content library. As a new service, any competing Redbox service is likely to have a limited catalog of content in comparison.

Netflix also has a large — and growing — base of consumer electronics devices that its subscribers can use to access the streaming service. Netflix streaming is available on the Xbox 360, PlayStation 3, and Nintendo Wii gaming consoles, Roku broadband set-top boxes, TiVo DVRs, and HDTVs and Blu-ray players from Samsung, LG, Vizio and other CE manufacturers. Altogether, Netflix expects to have the service available on more than 100 CE devices by the end of the year. It will take some time for Redbox to negotiate similar deals, and even longer to reach the kind of critical mass Netflix has already achieved.

When asked about the streaming survey, Redbox issued the following statement:

Redbox conducts surveys on a regular basis as part of its normal course of business to gauge consumer interest and preference. Redbox foresees the viability of physical media for years to come and believes the digital video landscape, while important to track, is still evolving.

Related GigaOM Pro content:

Redbox Success Means Netflix Should Consider Kiosks

  1. Redfin does not have blu-ray. Netflix does!

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    1. Actually, Redbox does have blurays in many machines. They just don’t have a big selection yet.

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  2. Redfin=Redbox

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  3. I wonder if Redbox could appeal to customers with an easy-to-navigate streaming service for short-tail content (of the kind they offer in kiosks) or if customers expect a larger library for streaming.

    http://www.jinni.com

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  4. Redbox will have to offer more than just a lower price if they want to compete Netflix. A library including the latest titles and expanding to devices such as video gaming consoles and STB will be a good hint. Have a look here: http://www.thehdstandard.com/streaming-technology/redbox-to-compete-netflix-online-streaming/

    Catalin
    Professional Streaming Consultant

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  5. [...] While it has agreed to new release windows with Warner Bros., Fox and Universal, Redbox has deals with Paramount, Disney and Sony (LINKS) that allow it to stock those studios titles on the day of release. It also has a slight edge on Netflix when it comes to HBO titles, as the DVD subscription company just announced a windowing deal for those titles. Redbox is also looking into facing off against Netflix’s streaming business. [...]

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  6. [...] traffic from studio-run VOD services, in turn leaving streaming services from Netflix and the rumored Redbox VOD offering in the slow [...]

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  7. [...] traffic from studio-run VOD services, in turn leaving streaming services from Netflix and the rumored Redbox VOD offering in the slow lane. Posted in Social Media « Dell to Unleash Slew of New Handsets You can [...]

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  8. [...] catalog titles for $5, $7 or $9 from the kiosks. The company is also reportedly interested in starting a streaming video subscription service that would compete with Netflix’s Watch Instantly streaming [...]

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  9. [...] subscription streaming service along the lines of what Netflix currently offers. According to a report from High-Def Digest in April, Redbox was floating the idea of a $3.95 subscription video service that would include [...]

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